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tv   Squawk Box  CNBC  October 19, 2017 6:00am-9:00am EDT

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oh, yeah, 2017 it's been 30 years, and "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. ♪ good morning, welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. today marks the 30th anniversary of the black monday market crash. back on october 19, 1987 the dow dropped 508 points doesn't sound like much but that was nearly 23% at today's level that would represent a drop of more than 5,000 points on the dow. you can imagine how that must have felt to people at the time. throughout the show we'll be talking about the differences and similarities between the markets then and now and whether something like that could happen
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today. let's get to the global markets report u.s. equity futures right now are looking a little bit lower dow futures indicated down by 68 points this comes after the dow closed above 23,000 for the first time ever and it did so in a powerful way with the dow gain of 160 points yesterday. right now it looks like the nasdaq is indicated to open down by 31 points the s&p futures are indicated down by 9 points overnight in asia, china reporting third quarter gdp growth of 6.8%, in line with expectations, but you can see a pull back in both markets. the shanghai composite off by a third of a percent in japan, stocks closed higher again, up 0.4% 21,448 >> ibm, that was almost 15 points, 5 in the morning, 6. 7. >> 9 at one point. >> cramer was going nuts
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there were all the naysayers, after 22 straight quarters of declining revenue -- >> and still there and there were the questions about the tax issues >> those were the consensus, cramer against consensus, saying it was more about the next quarter and the inflection point is coming. i was busy last night, i didn't see martin schroeder on with cramer >> we'll hear more about that. >> the dow did 160 this was 16 points that's a lot of it the rest of the market didn't look that great. >> no. ibm powered the way with that. we have some other breaking news to tell you out of europe spain's golf says it will move to suspend ka catalonia's autonomy after the region's leader failed to drop a bid for independence willem marx has the latest
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there was a deadline this morning for the catalans to essentially pull back from any declaration of independence. instead they sent a letter to madrid saying we suspended that declaration. we will continue to suspend it and we want dialogue with you guys rajoy said there is no dialogue, we will invoke article 155 which will allow them to strip autonomy measures from the cat lachb authori catalan authority. mariano rajoy will be coming here later to meet with european leaders, he doesn't want to talk about catalonia, but i'm sure it will come up in conversations. once they come up with measures which could includedissolving part of the catalan parliament, that could be days or weeks, at some point the central government will take action to try to reduce the power of that autonomous government in catalonia. they said they will respond with
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a declaration of independence. a lot of uncertainty and moving parts. >> okay. thank you. appreciate that. we will keep an eye on the story. i imagine we'll talk to you later. on wall street today, a pair of nieconomic reports weekly jobless claims at 8:30 eastern time along with the october philadelphia fed survey. as for earnings, travelers, verizon, bank of new york, melon, blackstone all report before the opening bell. we'll talk about that on "squawk," and paypal after the close. american express ceo ken chenault will be stepping down from a 17-year run as ceo. he's one of the first african-americans to run a fortune 500 company. when he took the helm in 2001, he worked to turn around amex after the company lost its partnership with costco. the firm expanded beyond it's core market of corporate and
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wealthy markets. chenault will be exceeded by steven squeri effective february 1st. on the conference call, the incoming boss said that the next chapter will be about building on the momentum generated with a special focus on innovation, expanding core product offerings, and enhancing brand and customer relationships, and partnering with others to stay ahead of the curve the credit card company posted better-than-expected thaird quarter results last night shares down about a percent this morning. other stocks to watch, ebay's third quarter profit was in line with forecasts revenue edged past analysts expectations because the company warns fourth quarter profit could miss expectations as it invests more in marketing and a revamped website in an effort to attract more shoppers. that hurt the stock. it's down 5.6% united airlines third quarter profit falling less than forecast the carrier had to cancel
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thousands of flights due to the hurricane and bad weather. united says it will continue to increase capacity to defend market share stock is down by 1.8%. united's ceo, oscar munoz, will join us coming up at 8:00 a.m. eastern time. final bids are due today for the cities trying to be home to amazon's second headquarters more than 100 cities are in the race the announcement will come next year. gilead has been approved for a cancer immunotherapy we will talk more about that treatment including the costs with meg tirrell in the next hour blue apron cutting about 6% of its work force.
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the meal kit delivery company's valuation dropped by more than 50% since it went public four months ago it's been dealing with rising costs, declining customers and the threat of competition from rivals like amazon look at adobe shares they are rising this morning the company offering upbeat full-year earnings and revenue guidance at its analyst's day president trump is walking back support for a bipartisan healthcare deal. eamon javers has more on the story. he joins us now. >> on tuesday in the rose garden the president said some things about this bipartisan deal between senators alexander and murray that appeared to a lot of people to suggest that he supported the deal we reported to you that afternoon that the president did not, in fact, support the deal, despite what a lot of people were interpreting from his comments yesterday the president made clear that he does not support the deal here's what he said. >> we'll see the bipartisan, lamar alexander is working on it
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very hard from our side. if something can happen, that's fine i won't do anything to enrich the insurance companies. right now the insurance companies are being enriched they've been enriched by obamacare like nothing anybody has seen before. i'm not going to do anythingto enrich the insurance companies >> when the president talks about enriching the insurance companies, he's talking about those so-called csr payments to insurance companies that he stopped last week. now in the proposed deal those csr payments would be reinstated not clear that the president knew that at the time he talked about the deal in the rose garden on tuesday. some of the elements of the bipartisan deal that's pending on the hill, they would pay csrs for two years, extend catastrophic plans for americans over the age of 30, offer states flexibility on plans and preserve coverage for essential health benefits. some people were thinking that there was a bipartisan way forward on healthcare, now that
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the president has made it clear he does not support that, it looks like it will be tough for republicans to get behind this it might be tough for lamar alexander and patty murray to round up supporters for the deal that they need to push that through. that's where the president is today. another key meeting on his schedule today he will be meeting with the governor of puerto rico at the white house to discuss puerto rico's hurricane recovery. that's something that the white house has been focused on. they have taken heat on it the president wants to make it clear he's doing everything he can to help the island recover from the hurricane >> when it comes to the healthcare market, lamar alexander made the argument if republicans don't do something with these failing exchanges, the next item up will be universal healthcare, a nationalized healthcare system that bernie sanders wants. how does that argument fly >> it terrifies republicans on the hill who don't want to go near that, and they don't want a bernie sanders victory the trick is for republicans,
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lamar alexander is right there in saying that if the exchanges collapse, then they will have to do something to fix it because otherwise there will be a giant political and humanitarian mess that is on their hands. so how do they fix it? do they simply sure up obamac e obamacare? that's not a position any of them want to be in they've been campaigning against obamacare for a decade in that situation they would be in a tough spot lamar alexander suggesting here might be a way forward where they could suggest they fixed the problems of obamacare and move on and be done with this debate which is getting in the way of republicans doing much of anything else on capitol hill. every time it seems like the healthcare bill is dead, there is some effort to revive it. we saw that with lindsey graham's effort and this one it's the debate that won't die at some point they have to do something and move on, or else the rest of the legislative agenda could be in peril >> can you handicap the five things that are supposed to get
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done by the end of the year? how about the budget what are the chances >> you have the budget you have to have the budget if you have tax reform. daca, the big imfwrags demigratl the president talked about a number of other things -- >> subsidy things. >> right the president also talked about an economic development bill that he wants to introduce that would come soon not clear when that would come or what that is. >> don't forget the iranian deal >> right >> i forgot about that there's so much on this congress's plate in a normal year it's difficult for any of these big ticket items to happen. it's very difficult for them to happen all at once, this is not a normal year in washington. >> you remember what i said, load it up if you're not going to do anything, load it up with everything you might as well put everything on there let's say you don't get two things done. why not have ten things on there to not get done? really act like -- >> i bet the budget gets done.
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you might as well load it up >> the budget might get done looks impossible, tax reform might get done, tax cuts might get done you notice that the president has stopped talking about tax reform as of this year when you talk to folks at the white house behind the scenes, they say we're very much aware of the calendar, we know that this year might be tough we're realistic about it, but this year is still at goal, which indicates to me they're almost sort of emotionally giving up on 2017 for tax reform and moving to 2018 that might still get done, but there's an enormous amount of stuff to do, healthcare, immigration, iran, all these big ticket items all at once, it's an enormous ask from the white house to congress. to your point, you know, if you don't intend to do those things, it doesn't matter. you would think the white house wants to have significant legislative accomplishments. >> maybe they'll surprise us we're not expecting a lot.
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>> no, they won't. i don't want to be cynical, if you ask me to put a bet down, it's a big, dead lift. >> it is eamon, thank you dow is not -- it is not worried about that many things closing solidly above the 23,000 level. it was a different picture 30 years ago when the dow collapsed more than 20% in a day that became known as black monday joining us now is karen firestone, chairman and ceo of rss management and she studied the crash in her textbooks in school. charles campbell is here from mkm partners i think your grandson was at a trading desk at the crash. how do you like that horrible, sexist what i did. no you were both there both of you. you were at fidelity >> i was >> you were involved in the
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business actually in the peter lynch days >> exactly >> those days put fidelity on the map. he was great i would ask both of you if we're beyond this kind of thing happening again. that's what everybody is saying, the fed put, or plunge protection team. or have we learned enough with putting the collars on, not allowing it to go. >> it's interesting. when people said to me or i read 30 years ago, it was the crash i had forgotten that it was the day. because something happened 30 years ago to the day does not mean there's similarity to this day. not only did we not have come computers on our desk or laptops, we didn't have connection the way we saw the market was with quotetrons. >> right
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>> and we were gathered, people were gathered near my office >> there was no bloomberg machines >> no, there was no internet, there was no electronic trading. it was er isheerily silent. you think about the stocks crawling at the bottom, that's what it was. would have to type in, and it was not instant information. it was very slow scary. >> leading up to that day, we had big losses leading up to it. nobody thought a 00 poi500 poins possible >> it was up over 40% through august 25th of this year the ten-year treasury moved up over 300 basis points to over
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10% in early october it's a very different environment from a 160, 165, to 230. it's a different environment >> over 10%. >> 300 basis points. the fed was tightening in that spring >> right thank doesn't mean it can't be repeated we have strategies today which are different from portfolio insurance which increased your equity exposure as the market went higher. electronic stop loss, essentially. they were presented by academics who were ph.d.s. >> you were selling futures against your positions >> elegant models. they made it sound like a black tie affair you don't need elegant models, you need models that will resemble economic reality. >> more scared of what we have today. you have rules based investing,
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the fed at zero for eight years. you have etfs, more potential for disaster >> you have a half trillion in risk parity strategies >> right >> all moving at the same time >> if you look at today's environment, the flash crash of a few years ago, one of the common fallacies is that investors think, not all, some investors think you can capture, quaun quantify and domesticate all relevant risks in a portfolio. i think that trivializes the investment process >> i agree with that to say that this makes a crash much more likely today rather than yesterday or the day before, i think that's naive in fact, they're the same type of trading strategies in a much, much, much more sophisticated way today than before. no one has calculated all the risk if there's an external event, there's something that we don't know about that might ultimately
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cause that, nobody thought portfolio insurance or nobody thought this would spread from asia, came from asia, through europe and the united states we had -- we have had other big declines, whether it was 2,000, we remember that tech crash. of course, you know, what we had in '08 this some pairson with today and periods of time where we can say, yes, this could happen. there are things that can happen, but it's a better news story. the media doesn't prefer grinding forward no one looking at what happened likes grinding forward >> there's people out there, you can -- >> he's been saying that for years. >> look at drudge. they can find a different guy almost every day that says the worst crash ever -- stocks will lose 50%, 60% of their value >> but that's a good story
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>> i know. >> the more there are investors who say the market is at a top, it's overvalued, it's extended, that's a bullish indicator. >> but when -- but at some point -- >> yeah. >> at some point it may prove to be true. if corporate earnings continue to perform -- >> it won't be today >> that proves to be false >> thank you >> when does the contra indicator become the indicator >> it's weird when that happens, then everybody piles in doing the same thing it's weird >> we have more coming up on "squawk box. we have united airlines posting an earnings beat and matching revenue estimates. we'll dig through the company's report with an analyst at 8:00 a.m. eastern time, united's ceo oscar munoz will join us on "squawk."
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welcome back to "squawk box. united out with third quarter results. earnings of $2.20 beating
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analysts expectations. joining us is -- how noisy was this quarter the quarter was noisy. with any airline, you're not looking at what happened but looking at what they're guiding to when they guided, they gave a unit revenue that was better than everybody expected. costs that gave you anxiety and capacity that raises questions about how good that unit revenue could be for next year >> in terms of how you're looking at the airline landsc e landscape, how does united measure up to delta, american? elsewhere? >> for us, it's lower in the priorities of airlines it's probably our least preferred of the stocks. i think they're in a transitional situation, where they came out with some bold revenue strategies they've having to retrace steps.
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it was going to be a billion dollar tailwind from this economy rollout. now it's a head wind they won't grow as fast. now they're growing faster some communication they got out there now is raising a lot of concern with investors but what that outlook could be for next year >> in terms of your price target on this company -- >> where we are right now? >> yeah. >> i think the airline stocks will be the sky is the limit or the sky is falling we went through an air pocket in the summertime the stock rebounded. the guidance they gave you is going to give you pause. you will pull back here. i would wait for a better entry point once we get clarity on the 2018 growth outlook. >> that's the growth outlook for united >> i think it's more about the company specifics. we have a firm view that the airlines are doing different things we have been in a 50-year race to the bottom on yields, service level, quality some carriers are investing better product, we are seeing
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carriers give you some better outlook. united maybe thinking what they'll do in that overall world. i think it's going to be more company specific >> how do you think the product issue? a lot of airlines are investing in product, but given the price transparency that customers have, even business customers, they seem to rush to the cheapest price irrespective of product level. when they pick the cheapest price and get there, we all complain about how terrible the service levels are it's a strange business. >> it's a strange business we do a lot of focus groups. we talk to people about how do you buy your fares price, price, price. they do google flight searches, looking for the best fare. when you ask, did you buy the lowest fare? no, there was a different schedule, there was a different time >> scheduling makes a huge difference in the airlines
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if you want to fly out of a particular airport, a lot of times you don't have much choice >> that's right. as you start to see what's happening in the industry today, if you look at how the distribution of fares evolved in the last 1015 ye, 15 years, the discounted prices have been low. at the higher end you're getting better realization, better yields what i think will happen, you see the airline industry evolve, you will see carriers differentiate on product and service level. if they can extract a couple extra bucks out of a flyer for a ticket, that's meaningful. >> david vernon, thank you a quick programming note, united's ceo, oscar munoz, will join us right here on cnbc at 8:00 a.m. eastern time perhaps we will put some of these questions to him. when we return, the national retail federation expects hol wasn't sp
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you're watching "squawk box" live from the nasdaq market site in times square. good morning welcome back to "squawk box. look at the u.s. equity futures at this hour
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dow looks like it will open off after what was a big day yesterday. dow looks like it would open down 80 points nasdaq would open down 32 points the zs&p would open off 9 point. >> that's tiffany "i think we're alone now" 1987. >> i didn't know she covered that -- >> she did i saw her in concert >> we have some news crossing the tape nissan says it has decided to suspend domestic vehicle production at its plants in japan. the company considering reinspecting unregistered vehicles outside japan, a day after they admitted that uncertified checks continued that stock is trading up -- that's closed in japan that's where it closed at.
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unaffected now by that news. general electric, the new ceo, john flannery is expected to cut thousands of corporate level jobs next month as part of a strategic review flannery is also shutting down research centers in shanghai, munich and rio the "journal" also reporting that jeff immelt sometimes took an extra corporate jet when he traveled a nearly empty jet would follow the one he was traveling in, and be used in cas there were mechanical problems >> just like the president of th >> he takes an extra one >> jeff was all about eco imagination. the two planes were used for business, critical or security
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purposes. for a look at the state of the retail sector, we have matthew shea and chris baldwin, a member of the nrf's executive council. welcome to both of you >> thanks for having us. >> we're ahead of halloween, the numbers are impressive in terms of what people are looking to spend for halloween. an increase of 8%. why do you think this is happening? i know people spend a lot on halloween, but that's a fairly significant jump >> it is it's consistent with what we saw with back to school and the preview to the overall holiday season the fundamental force the economy are strong talked about the stock market, unemployment low earnings are up, going up. consumers are in a good place. retailers are figuring out the big changes taking place in the markets. so people like to find the hyperbolic headline about what's happening, what's the geo size
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mac, biblical way to describe retail, it's like a tectonic plate shifting, it's different but retailers are figuring it out. >> when you see a headline number like up 8%, we have trained ourselves to think what does that mean for same-store sale s you have to imagine people are spending money but it may not show up in the traditional places how do you look at this? >> the consumer is really strong increasing all the investment that retailers are doing are about making their brand available to consumers when and where they want to >> meaning online or mobile? >> online, in the club, mobile our business has consistently gotten better and better we're encouraged by what we see going forward. >> those numbers are to the what you see in the actual hard line retail sales, not an 8% gain in retail sales what are we seeing. >> i think we're seeing low single digits, but you have big shifts it's different in channel by channel. i work for a value retailer.
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value retailers are a terrific part of the united states economy. we serve middle class consumers and do it well when we serve them well, our business responds. we're encouraged by what we see. the environment will get better going forward. >> i see you did not bring a department store retailer with you to talk about these issues >> we tried. we had one we wanted to bring on, but we had the qui yoet per of earnings. we couldn't get that guest here. >> you used terms like biblical in describing what's going on in retail >> you guys broke this story on a tuesday of august of '16, you had doug mcmillan in hoboken, that was whole foods two, three years ago, people were saying e-commerce will hurt
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brick-and-mortar jack ma is now saying last week i was in hong kong, he is saying you can have no bricks and mortar without e-commerce. i think the world changed fu fundamentally. people don't think bricks and mortar will go away because of e-commerce, or that e-commerce will supplant it, all of that speaks to the nature of the injury. >> you make a good point, not all retailers are created equal. it seems like all of retail has gotten painted with the same brush. i know that made things difficult for you, too i heard you guys would have an ipo, but this may not be the time to go to an ipo now you're looking at sale of the business >> retail has been painted with a broad brush. one thing we see, if a retailer can deliver value and fresh, whether it's apparel or a bag of bananas, at the right value, they can win
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jpmorgan issued a terrific report about the macro pricing environment, talked about a whole bunch of value oriented retailers being 30%, 40%, 50% better than online retailers from the perspective of pricing. that underpins why it's my view that value retailing is such a big part of the economy. >> you look at walmart, they're trying so hard to make sure they're addressing online strategies in a big way. everybody constantly compares amazon and walmart -- >> speaking of amazon, when is the last time you spoke to jeff. >> not any time recently >> amazon was rumored -- >> back in march >> is that a possibility who would you sell to? >> we'll see we feel great about our business >> you might sell to someone if you don't do an ipo, leonard green might want to do something. >> we'll see >> can i ask a policy question you represent a lot of different retailers. i don't know wheral mart or wh
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amazon -- >> both members. >> the small guys were always saying walmart is getting too big. now you have amazon, and now alibaba. does it become, in the same way we talk about the frightful five or something in the tech land, in the valley, does it become a situation where there's sort of three or four major players and that is it when you hear about nordstroms struggling, do you say to yourself -- i don't know how many retailers you represent >> 18,000, 20,000. >> that supposed to be halved? >> we hosted a pan el with wall street analysts yesterday so they would understand what's going on steve liesman was our -- we were slumming around for a speaker, steve was a our luncheon speaker. he did a great job
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we talked about how the barriers are decreasing, how smaller companies and smaller businesses are finding ways to adapt technologies to compete with the big ones there's plenty of smaller opportunity for the retailers to find a path forward. >> if you step back and look at history. in the mid '80s, sears, kmart and woolworth's were dow components online and the consumer's ability to understand pricing in the touch of a phone is today's existential threat as you think about that, the industry is transforming rapidly. we think we can win over time. >> what kind of online strategy do you have? i think of somebody like jet.com, how that's a direct threat >> sure. >> with what you're doing. >> we're working really hard to do something really simple
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make a really value oriented trip much more convenient through technology later this week we'll launch technology that will avoid people going through a checkout line we send coupons to our consumer base over the course of the year, we'll put those on your phone. >> so everything in the cart, you walk out with the cart like the amazon stores they talked about. >> that's right. there's a kiosk in the front of the store where you move through, pay, move on. value and convenience is a way we'll grow going forward that's how technology will help us win >> b.j. is still available for a symbol, if you did do an ipo >> the company was public in 2011 we -- >> private for 2.8 billion >> now they want 4.5. >> 4 >> as i said, value retailer -- >> how much do you think we could raise? >> not enough.
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>> we know people. >> do you an amex card >> yeah. >> call ken chenault, extend the limit. we know people, do you think we could run this. >> that's harder the operational issues, a little more complicated >> let's do some digital thing >> put it on the cloud >> let's do the satellite cloud thing. never mind >> chris, thanks for coming in matt, thank you. coming up a popular dating app wants to expand your professional network bumble is taking on linked n. with its new bumble biz program. the co-founder and ceo joins us in a few minutes and jeff flake has been called the most endangered senate republican. we'll ask him about that after drawing the ire of president trump, he will join us to talk about the gop's tax bill at 7:30 a.m. eastern and united airlines posting a
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better-than-expected earnings. oscar mu nomunoz will join us a 8:00 a.m
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time for the executive edge. hearst is buying rodale which owns men's health and runner's world. hearst publishing cosmopolitan, it will add all of rodale's 93 editions to its portfolio. it will also gain control of the book publishing unit terms of the agreement have not been disclosed >> i'm a big men's health -- >> you are -- >> i'm trying to get it through osmosis. >> you set yourself up for this. where he was going with this >> i can't believe you have not been on the cover of that yet. >> i have the muscles. >> the poster child for men's health >> they just merged with men's
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fitness. >> what's the difference >> they used to be very similar. i used to try to get the osmosis from both. >> how often -- they have to come up with articles every -- >> six-pack abs. two minutes, five minutes, ten minutes -- >> 5 1/2 minutes cosmo the came way i look at the stuff they come up with, really >> how can you come up with titles for this all year long? same thing >> it's fascinating, the consolidation of the magazine business, they're all coming together and the titles re, as you see, slimming down they now have men's health and esquire eventually at some point -- >> we're not buying bjs or a magazine we're not doing that >> no. it would be difficult to run either of those. >> not doing either one. >> let's talk about stocks to
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watch. adp says it is making many of the changes requested by activist investor bill ackman. the company's ceo argues that changes are in motion but it will take time to see results. mongodb pricing its opo at 24 dl$24 a share. this values the company at 1$1.2 billion. it was number 27 on cnbc's disruptor 50 list this year. they will start trading on the nasdaq today mongodb's ceo will join us at 8:40 eastern time. >> did you look out there? >> did you see bacon >> there's food for you. >> i see a lot of times it will be a continental offering. >> an ipo gets big play here >> other times they bring those things, where you lift the lid off, there's something inside. >> something hot inside. >> always a -- like a surprise
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could be a buttermilk biscuit sandwich, or -- >> okay, homer >> he's homer. could be eggs floor te s florine >> the mongodb ipo taking place today. bumble is branching out taking on linkedin with the new bumble biz feature we'll talk with the company's founder after the break. >> this is more music from 1987. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time...
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welcome back to squawk bumble, the popular dating app, is redefining how we think about connectivity it recently launched bumble bizz joining us to talk about it is whitney wolfe, the founder and ceo of bumble. what is bumble businessz, we've talked about the dating app portion of this. >> bumble bizz is an extension of bumble. so we originally launched bumble as a female-first dating
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platform and it's been just shy of three years. >> female first for those who don't know is that women make the first move. >> correct, yes, always and this changes the dynamics, it reduces harassment, it creates a more -- a kinder exchange between two people and now we have launched a business vertical within for opportunities, swiping for opportunities, swiping to network. we did this because our users were already using the platform to network women were taking control of the platform to go out and find business opportunities and expand their network because they were in control of the experience so we built a vertical for them to do this seamlessly. >> is a swipe -- >> yes, swipe. >> you go just one over? >> you swipe right for yes or left for no. >> throw them in the garbage or set up a connection. >> so 10 billion swipes, there's a lot of loser men on this thing, right >> who says those are swipe
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lefts? those could be swipe right. >> oh. okay. >> so it's very interesting. >> 10 billion is unbelievable. that's a lot of swipes. >> so we're very excited about that we've grown very rapidly and we have seen the highest engagement per all three of our verticals in bumble bizz. >> so we were talking during the commercial break about harvey weinstein and harassment online and harassment in the workplace and how -- what i was trying to understand is on bumble bizz you thought people before you did bumble bizz people were trying to find people on linkedin or pick up people on linkedin or both >> what has happened, women have experienced on other platforms when they're using it for professional reasons they are being solicited for romantic purposes they are being told professionally speaking you look very beautiful. >> that's not professional and it's inappropriate so with
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bumble women cannot be solicited, women cannot be picked up and they take control. >> if i was looking for somebody to get into the business, harvey weinstein might be somebody i would solicit saying okay, you're in a position of power, let me come to you that looks like i made the advance on him. >> no, because it changes the dynamics bumble has set the stage to create a kind social network and when you set the tone with how your product is built and you lay down the ground rules, this is a place where we treat each other with kindness, we are respectful you weed out that behavior. >> do you think you will up end linkedin facebook recently seems to be getting into the -- >> tbh >> to the business side that you can put your resume on facebook. where does linkedin stand with this >> i think facebook and linkedin are incredible but they are there to connect you with people you already know they were not platforms built to
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extend your network. they were built to stay in touch with your network. we want to be the inverse of that we want to be the modern approach where we aren't saying this is where you only connect with people you've already met this is not a place to just amass your rolodex that you already know this is the place to connect with new people so it becomes an inverse of something like facebook or linkedin. >> great to see you. this is a longer conversation. >> absolutely. thank you for having me this morning. >> you can't swipe on this, right? >> it's got to be on your phone. >> you're like my kids my kids are off of computer screens. and bumble that's not a great -- bumblebee but i bumble around a lot. >> we'll get you on bumble businessz. we'll make you a profile. >> we'll be back in a minute the governor has declared a winter weather emergency...
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earnings alert -- quarterly results from two dow component this is hour, travelers and verizon. we have the numbers and the instant market reaction straight ahead change at the helm long time american express ceo ken chenault is stepping down. jeff sonnenfeld joins us with his take coming up plus, then and now it's 30 years to the day since black monday and stocks are soaring to new highs we'll talk about that as the second hour of "squawk box" begins right now ♪ we can build this dream together, standing strong ♪ ♪ forever >> announcer: live from the beating heart of business, new york city, this is "squawk box."
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>> this is from '87? >> welcome back to "squawk box" on cnbc. we're live at the nasdaq market site. >> we forgot out good the music was. >> in the headlines, earnings just in from dow component travellers, travelers are ea earning 91 cents per share well above consensus estimates. prafts were do s profits were down. we are also watching shares of american express amid two pieces of significant news. ceo ken chenault will be stepping down in february after 17 years on the job and amex reported quarterly profit of $1.50 per share, beating estimates by two cents revenue competed forecast thanks to loan growth and higher card member spending but that's -- ken's retirement, big news in the financial world even in corporate america, interesting little fact for you this
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morning. when ken chenault joined -- became the ceo of american express there became three african-american ceos in the "fortune" 500. that was 17 years ago. today there are only three after this african-american ceo so it's an interesting conundrum in the corporate america world. >> did we see this tweet >> what happened the president is awake >> the president is awake and tweeting "republicans are going for the big budget approval today. first step towards massive tax cuts i think we have the votes but who knows? okay oh, we had it ready to go. excellent. separately, the controversy over catalonia is escalating spain's government said it would move to take control of the region after its president would not back away from pushing independence
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the parliament will begin legal proceedings that will allow it to take control of catalonia's regional government. futures after what was a huge day yesterday. the dow looks like it would open off about 113 points s&p 500 looking to open down about 14 points and the nasdaq opens about 46 points. today marks 30 years since black monday on october 19, 1987 the dow dropped 508 points which was a nearly a 23% plup j and for one brief shining moment one of your colleagues was right for a couple days. >> former colleague. >> mike san tolly joins us with more on the cracks before -- where were you you were too young >> i was in high school. i listened to the crash on the radio in english class because the teacher's wife was a stockbroker.
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but there were a lot of cracks that opened up in the market a couple of months in advance. people think of it as a one off bolt from the blue it wasn't. the dow was down 9.5% the week prior to the crash, down 17.5% from its high from that august and at that august high the dow was up 40% year to date. so the market has been levita levitating and it went haywire on black monday. the dollar and stocks were both collapsing so essentially you had this major liquidity squeeze going on not connected too much to the underlying economy except that maybe it was overheating, people were worried about inflation so if you look at the pre-conditions, how the market was behaving, it's not really easy to find too many direct parallels to today we've talking about unusual calm the market is not at a steep
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angle. so i think it's worth pointing out it didn't exactly woman without warning even if the one-day move was completely outsized. >> i was in l.a. you remember "when e.f. hutton talks people listen" >> sure. >> that was a great firm and that week was horrific scary leading up to it 200-point days that we thought this is just -- so 9.5% the week before. >> the piece i put up online connected to this, i went back and looked at the quotes and the quotes i pulled were for the weekend before people in business 30 years saying this is the worst correction i ever saw. >> that was before so on that monday it was like this is impossible and people don't remember -- you probably remember the next couple of weeks you'd go in in the morning, this is l.a. so i would be there same time as here and after the crash the market would be down -- the futures would be indicating another 300 points the next morning so we are
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already down 23% and then you'd go in and -- you were like sick to your stomach. you didn't know. at that point you didn't know whether the world was ending or not. people don't remember '87, they just remember 2008 2008 we thought was scary, remember the money markets were locking up but back then it was the same sort of feeling and then they'd rally and the next day you'd come in and they'd be down another 200 points. it was unbelievable. >> jeff, you wrote in september before that, you were talking -- >> yes, utility average peaked in the spring of '87 the tranniy ies peaked out in t summer and i was saying we were going to get a waterfall decline. i didn't know to call it a crash because i ain't never seen a crash. then it started on october 14 is when the carnage started on october 16 which was friday i turned to my second in command on the trade desk and the dow was down 105 points or 108 points and i said this is just for practice and the rest as they say is
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history. >> and remember who else made her career the timing was unbelievable. >> to that point about that friday, everyone remembers marty sweig on wall street week saying with pain in his voice that he sees something like a crash. not a bear market, but a crash one of the most prescient things ever. >> by the way, maryanne bart ls is here, too, the head of portfolios strategy at merrill lynch. >> you were a junior analyst >> i was most people know me as the technician but i started on the fundamental side i was a junior technology analyst in nashville, tennessee and i remember the week before and what's interesting is i was only two years into the industry so a crash to me was normal. but my aunt was a technician, bern dead bartels murphy
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and i remember the technicians being bearish, including marty because the breadth of the market had really started to narrow and they didn't like the concept that interest rates were going up so i remember the technicians giving warnings but noble believed them. >> let's take what you guys have seen and lived through and apply it to today. do you see signals like this i know things are different now with the limits that they have and the circuit breakers that they have on the stock exchange now but what if anything concerns you with what you've seen today as we are sitting at the dow above 23,000 for the first time ever. >> absolutely nothing. we're in a new secular bull market and what people don't since that the crash happened during a secular bull market that's what most people didn't realize and what was interesting is we changed our behavior that's when the quants started
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to blossom but here's the thing the crash created such a wide deviation that all the models were skew sod that nobody wanted to use the data point of 1987 but the breadth of the market is hitting record all-time highs. earnings are there to support the market if we didn't have earnings to support the market that would be worrying but we have earnings and we have a global recovery at the same time. in fact, the ftse world index just started breaking out of a multiyear base so this is a very, very different environment and we're more global than in 1987. >> what's the irr of ten times your money in 30 years if any millennials are watching, both of you, i want to tell you this. >> listen, grandpa's speaking. >> long-term stock, long-term, you have to buy them don't -- right >> over a 20-year period you've never had a point-to-point
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decline. >> but what's ten times your money? because i can do the rule of 72 for doubling i need ta ti calculator. what is that that's double digit, isn't it? isn't that double digit? 10%, 11% >> we're talking 23,000. we'll talk 30,000. >> a million. >> we'll be talking 3500. >> a million in my lifetime according to buffett. >> secular bull markets compound at 16% per year and there's not many of us left around that have seen the 49 to 66 secular bull market or the '82 to the 2000. >> that's the sad part. >> this is going to be the longest strongest secular bull market of my career and i've been in the business 47 years. >> and the secular bull market was the longest secular bull market and that was 20 years so what you're seeing is significant and i believe what you're saying. >> so jeff when you see people who say it's too late to get in
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now, what do you say >> i say secular bull markets last 17, 18, 19, 20 years and i think even if you start the measuring point in march of '09 you ought to have another seven, eight, nine years left in this thing but the majority of stocks bottomed on october 10 of '08 so i think bull markets, secular bull markets have three legs the first leg ended in may of 2015, we went into this upside consolidation with all the negative nabobs said was a massive rounding top and we're going to get a crash we broke out of that consolidation, we're in the second leg which is the longest and strongest. it's driven by the accommodating fed policy that drove the first leg but in this leg it's when the economy starts to improve and you transition from an interest rate driven secular bull market to an earnings driven secular bull market when it ends is unknowable but then you break out and get the speculative blowoff leg like '95 to 2000. >> 8% a year for 30 years? >> is that what it is? >> so basically roughly the long-term average without
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dividends so you're probably getting to your 10% long term average. >> compare that to a savings account where you're getting zero. >> >> out of the 47 years, you had the stash for how many of those 47 years >> i had it until my wife made me shave it off on our 40th wedding anniversary so that was seven years ago. >> so for 40 years you had the stash and for seven you have not. can we glean anything from that? >> it's been a good seven years. >> yeah, it's been a good seven years, thank your wife facial hair -- unless it's that hipster beard, sorkin, which i fully expect you to have. >> i'm going to go on vacation. >> you said it was patchy. >> it's a little patchy. >> i have something to help with that i do but there's other issues but i have something to help with that. >> with a beard? >> with hair growth but there's some life-style issues. >> jeff, thank you both. mike, good to see you coming up, american express
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ceo ken chenault is leaving the company after a 17-year run. we'll talk about his legacy and the future of the company. that's next. but as we head to break, here's a look bad on october -- do we have to? october 19, 1987 "wall street week" host louis reuck heizer. >> just your money, not your life everybody who really loved you a week ago still loves you tonight. poanth t's a heck of a lot more imrtt anhe numbers on a brokerage statement. what powers the digital world. communication. that's why a cutting edge university counts on centurylink to keep their global campus connected. and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink.
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and change the way you wifi. welcome back to "squawk box," everybody. earnings just in from blackstone the investment firm reporting a bottom-line number of 69 cents a share, well above what the street was looking for at 54 cents. revenue also beating forecast and blackstone says it has a record $387 billion in assets under management. >> long time american express ceo ken chenault is stepping down chenault has been at the helm of the credit card financial giant for the past 16 years. he'll be succeeded by steven squerry. joining us is jeff sonnenfeld of the yale school of management.
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he's also a cnbc contributor ken is a legend in the business. put the company and brought the company through 9/11 but there have been ups and downs along the way. how do you think about this? >> this guy was an incredible peacemaker and he was in a quiet way visionary in middling together technology leaps forward as well as revolutions. a lot of challenges no greater than the back room politics of american express it was legendary subject to lots of books and entertainment but howard clark and raleigh warner off the board bringing down poor jim robinson with shady banking situations, peter cohen, harvey, it was incredible that in just a dozen years the number of personalities, egos
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and titans caught up in this drama and the only thing they had in common with each other is they all liked and admired ken chenault as he came through he has done a masterful job through not just back room politics but through 9/11 and a lot of leaps forward. big challenges on the competitive landscape now but he's -- he walks out with the stock pretty close to an all-time high. i think the -- his total shareholder return was about 120% i've seen a report a little lower but some people forgot to figure in dividends. that towers over the financial services indexes for dow jones 40% for that period and 100% for s&p and he's way ahead of that so he has a lot to be proud of going out this point. >> it's a remarkable thing and we should say warren buffett praising him this morning. warren buffett a big shareholder in american express. in terms of the challenges going forward for the company in this environment where everybody is trying to compress margins, one
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of the things american express has done so well for so long was be a service business. those services getting more and more expensive. >> that's true and he came in just at a time not as ceo but he was in the stratosphere of american express already at the time of the famous boston fee party where we had already an insurgency that happened out of boston restaurateurs and other retailers complaining about american express charges prices back to the retailer as well as the card carrier this costco disruption most recently where stock plunge 44% around that same time related to that, his concept was the exclusive retailers. that was american express's deal that they went for exclusivity and they've had to surrender that and with visa and mastercard which were both hold west coast-based credit cards out of banks on the west coast that have now soared in there, taking an awful lot of business
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away, a lot of places that will take those cards and not american express and the indignity of paypal run by an former american express executivedan schulman now neck in neck with american express and not a single article -- i won't give you a figure but you name your annual salary figure on a bet on this not a single article has mentioned who their most pernicious threat is out there i'm amazed nobody has pointed to this. >> we don't have all day, jeff, but quickly -- >> china union pays, joe this is a company that is larger than the entire u.s. credit card industry put together and multiplied by ten. >> i want to get your comments on immelt. you remember we were incredulous when you were talking about what a great job the ceo had done in transforming the company that was a couple months ago, the stock was 27 or 28 it's now 23. the thrust of the piece the journal is that flannery is trying to dismantle the legacy of his predecessor
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talk about dividend not being safe, the company is not going to make its numbers. have you reize iffed your take on the entire immegs situation, yet jeff are you still selling that it was a great transformation and it's set up perfectly and that the stock going from 60 to 23 was not a problem? >> i think it's interesting you bring this up as a benchmark because you put this up, who else took over in one? yes jeff immelt stepped in and ken chenault stepped in there and mulcahl kcahey of xerox. >> just trying to figure out what you were thinking or whether you've reize iffed it now but we don't have a lot of time. >> i know, running time out on the clock here i think immelt could have done better there are some areas i admire the succession process divisions were probably sold off at the wrong time. i think activist pressures didn't help any and i'm sorry to
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see we saw that happen to dupont and others when we sell at low and buy high that's not great and i'm not sure nelson peltz's barking at the side here. >> we have to go but i mention at at the top of the hour with ken stepping down there are now only three african-american ceos in the "fortune" 500 there were only three, by the way, when he took the job 16, 17 years ago. you talk about corporate governance and diversity on boards what's going on? >> it's a shame. we did have an african-american short lived who was the ceo of mcdonald's a few others we've lost, ursula burns, that takes us down to three. i wonder if anybody could name who the three are, ken frazier, ken chenault and marvin ellison at j.c. penney isn't that incredible we've made
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so little progress it's shameful. we have to ask questions why that is. there's a brief right now that we have this misplaced worship of the meritocracy that somehow that answers it all but that's really a charge that goes into silicon valley where they have difficult gender and racial profile issues but for the rest of corporate america, you're right, it makes no sense especially when you look at what great leaders these particular individuals are. ken chenault has had this inspiring leadership model. >> jeff, we appreciate it. mark ferguson of tia when we return, a consumer alert. a pretty scary story on digital scammers targeting the real estate world and stealing down payments from unsuspecting home buyers these are details you need to know that we'll get to next on "squawk box.
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coming up when we return, jeff flake joins us with his take on everything from tax reform to health care. stay tedun, you're watching "squawk box" right here on cnbc.
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♪ oh, i wanna dance with somebody ♪ ♪ i wanna feel the heat with somebody ♪ ♪ yeah, i wanna dance with southbound ♪ ♪ with somebody who loves me good morning, everybody, welcome back to "squawk box" on cnbc we are live from the nasdaq market site in times square. among the stories front and center today -- a number of regional banks out with earnings bank of new york mellon beating its estimates while key corps and bb & t beat forecasts. bny is up three quarters of a sentage point, key corps down by six-tenths of a percent. toyota, mazda and honda say components made with aluminum from japan's kobe steel are safe that's an issue because kobe
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revealed it falsified quality data for over a decade blackstone beat estimates on the top and bottom line in the latest quarter the investment firm saw double digit increases over a year earlier and has a record $387 billion in assets under management verizon's reporting -- first thing i look at is the stock can't tell on the -- 98 cents adjusted is exactly where wall street was $31.7 billion in revenue is above expectations. >> estimated was 31.45. >> so that's above this is an important report because of recent things that at&t has said and comcast about a month ago talked about hurricanes affected video ads so -- >> just saying it's been a very challenging environment in terms of competition. >> i don't know if you can see it, retail post-bait connections the expectations was 438,000.
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>> so that's a big beat because people expected about 438,000. >> really? that's because it's what people are looking at at&t and come cast will be keying off of this, there's huge worries recently we'll have josh suppan on today as well at amc this cord-cutting thing has reemerged in the last six weeks. >> but that should have been a retail post-page connection. >> retail post-page connections, 603,000 including 486,000 post-paid smartphone net ads >> that's a big beat. >> they say the retail post-paid churn came in at 0.57% they say this is the tenth consecutive quarter of less than 0.9% >> you see the video subs. that's the other big number. >> i'm struggling to find it
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right now. >> we'll come back to this. >> reiterated revenue earnings we are share, capital spendings come in at the lower end wow, there are talking about revenues from oath from tim armstrong so that's -- >> that's going to be something we break out now, too. >> we'll come back to this in just a minute and break it down. check this out, digital scammers are at it again now they're targeting real estate agents and title companies, sending home buyers fraudulent e-mails on closing day that look like the real thing. they're diverting the down payment money to other accounts. diana o diana has more on what's turning out to be a remarkably expensive scam. >> if you're buying a home listen this will cost you hundreds of thousands. even a million dollars that's attracting hackers.
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they send a fake e-mail to home buyers saying there's been a change in the routing number for the account and, boom, the unwitting entire wires the down payment right into the crooks' hands. it happened to this man in california he nearly lost $100,000. so he gets an e-mail at the last minute from his real estate agent -- he thought it was the agent. all the signatures were the same, it said there was a change in the routing number. luckily he knew his credit union was super slow so he called the escrow officer to say the change would take him more time her response "what change? that's when they figured it out. >> i do not know that the e-mail was a scam i was more frustrated with having to send the money to a new bank and that my credit union wouldn't have been able to make our deadline. so i didn't lose it. it was a frightening experience. >> now the fbi is on to this
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if you get a change order at the last minute, call your agent, your title company, whoever, confirm it with an actual perso person. >> now to washington as the republican tax refirm bill edges closely to reality, one senator is fighting for loophole transparency. joining us now, arizona senator jeff flake we were adding up with eamon the things you guys are saddled with between now and the end of the year it's daunting. let's start with what we just talked about, this budget deal is a vote in the bag yet, do you think? >> i think on the budget deal
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it's in the bag but whether or not we can get tax reform, we'll see over the next couple months, i certainly hope so. >> what would be the stumbling block with tax reform that you see and we don't need to name names on who wouldn't like it but -- and also what do you think the primary benefit that might bring everybody on board is with -- what do you think is the one thing that survives that everyone will vote thumb's up? >> i think we've got to bring the corporate rate down. chuck schumer has even voiced support for that in the past democrats and republicans realize that in order to be competitive we have to bring the corporate rate down. the biggest stumbling block is going to be to do actual reform and not just a tax cut and reform involves broadening the base and that involves getting rid of very popular credits and deductions and loopholes when you add all of the credits, deductions and loopholes and tax
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references in our tax code it equals more than our entire discretionary budget, about $1.25 trillion over ten years -- sorry a year so that's what's going to be difficult because every credit deduction loophole out there has a constituency and believe me they're going to be lobbying washington in the next couple months. >> do you think 20 is the final number or do you think it's 22 or 23? do you believe 20, that the president won't move from that >> i think it will be between 25 and 20 i'd say 22, 23 is more realistic. >> 22, 23 is more realistic. we'll come back to tax reform. but do you think daca gets done? do you think something with the subsidies for obamacare gets done is do you think iran -- the iran deal, do you think that -- that that gets done by the end of the year? is it possible to do this this stuff in this senate
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>> there's a lot on the plate. i hope we get daca done. that has been -- we've been needing to do that for a long time but now we have a deadline. that's a difference. the deadline is end of february, early march but we really ought to get it done as part of the omnibus bill we do later this year i think if we do something close to the d.r.e.a.m. act, the house has something called the rack act and combine that with some aborter security measures like the house has already passed, the $1.6 billion, i've introduced that as a bill so you have border security plus daca and i think that's probably the sweet spot we can work with. >> yesterday i'm sure you saw secretary mnuchin, i thought he was pretty honest and fairly straightforward talking about how difficult it is to cut taxes if you're not going to cut taxes on the people that pay taxes but that will be demagogued by democrats in terms of being something for the rich but if
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you have top 10% pay 70% of the taxes, i mean, to have any type of effect they may end up not paying as much do you think you've got any republicans that will be able to withstand the pr hit from that >> it's obviously a tough political sell but when you do the arithmetic you find what you just quoted. a small percentage of taxpayers pay a lot of the federal income tax. now that's not to say americans aren't paying taxes. most all americans, it's just in different forms in the federal income tax so it's a difficult political sell but what i'm hoping is that we get some actual reform that lowers the rate and broadens the base we desperately need to do that and that will be difficult i put out a report a couple weeks ago talking about these loopholes and deductions and just focused on one.
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alpacas, just as an example. alpacas under the tax code are treated like livestock even though it's just kind of an exotic pet but that's just about a $10 million deduction over all i can tell you the alpaca lobby came after me for that small little deduction. >> i'll bet. >> and if you multiply that to everything else -- >> don't ever try to milk an alpaca, just telling you so you saw the other -- now i don't expect you to ever be an actual bff like mcconnell is with the president you saw those two guys they're like this. i think you saw that the other day. but my question is will we ever see that from you at the white house, do you think? and what do you make of steve bannon saying that anybody who's not right of roy moore is out? >> well, i don't think you have
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to be chummy with anybody to get things done, frankly i've worked with president obama on things that i thought ought to be done i opposed republican presidents and democratic presidents when it's something i disagreed with so there's no requirement that you are chummy with the president or he with us. >> when mitch mcconnell said -- i guess i was kidding around a bit but the point i'm trying to figure out is i thought mcconnell when he said -- he brought up the names aiken and sharon angle and -- there were three or four of them and i hadn't heard the names recently and -- that was a disaster running those people do you think that bannon can be successful with declaring war on everyone but ted cruz? >> i don't know. there's a long time between now and the primaries of next year so we'll see how it shakes out
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i think we ought to know what we know works and limited government, economic freedom, free trade, those are the things that animated the republican party for generations and we ought to keep going in that direction. >> okay. it just gives us things to think about but that was surreal the other day and i'm fully expecting you -- do you play golf >> not well. >> not well? okay, doesn't matter thank you senator flake. >> we appreciate it. >> one quick note, we're talking about verizon and the big issue has always been video subscribers and that was the issue for at&t talk about cord cutting, it's an issue we talk a lot about. in this instance the company saying it added 66,000 new fios internet connections but those are internet-only connections. lost a net of 18,000 fios video connections. >> sequentially how is that 18,000 is that big? is that improved
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that's what we need to know. >> as to what was expected that's a good question but it makes the point that michael wolf talked about with us yesterday saying they could be in a different position than the at&ts and the cable companies and the other ones that have internet connections at the same time the internet connection is what they hold on to. coming up when we return, we'll welcome squawk friend walter isaacson. his latest project might surprise you, it's an awesome new book we will tell you all about in the just a moment. he is there with it now. back in a moment energy is changing fast and we're changing with it. building a smarter grid, investing in new technologies, that's aep's road to the future. and the international brotherhood of electrical workers helped make that happen. the ibew's outstanding union professionals have the skills and training to get the job done right. that's good for our customers and for our bottom line.
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welcome back to "squawk box. joining us on the set is a good friend of ours, walter isaacson. he is here and he has a new book, guys it's titled "leonardo da vinci." it delves into the famed life of the controversial painter. we should note this book was sold and bought by leonardo dicaprio who wants to play leonardo da vinci. >> you understand hollywood far better than i do. >> well, your last book about
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steve jobs was turned into a film as well. >> the einstein one was fun which was -- ron howard did a long series. >> on nat geo. tell us how you decided to do this. >> everybody i've written about has been very smart. you have a lot of smart people on the show. at a certain point you realize they don't amount to much usually, they're a dime a dozen. what counts is being creative, imaginenovativinnovative that means seeing across disciplines. steve jobs understand the connection of beauty and technology, benjamin franklin did it i wanted to do the ultimate of that the trooufian man, you talk about art and science and spirituality. >> you just called him the ultimate of that where does he rank in terms of the pantheon of both greats and greats within those that have been the subjects of water isaacson's biographies now >> i think you can make an argument -- and i tried to,
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takes a lot of pages -- that he's the most creative genius in history. meaning he knew more about more subjects including everything about the universe, how we fit it into that can be known in his time and he was able to see the patterns. >> you couldn't at that point figure out a wrinkle in time-space continuum. >> no, but he figured out time. >> tough to beat einstein. >> but einstein had to stand on his shoulders. >> if you look at every one of leonardo's paintings, they're all in motion. you look at the last supper, it's not a scene, it's a narrative. you watch jesus say "one of you shall betray me. it ripples out like that and he knows time is not an instant but there's also right before and right after connected to it. including the mona lisa which is very interactive because he's able to make the lips sort of move based on the way you're looking at it. so there's an emotional
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narrative. he's got a better sense of time than anybody until einstein comes along. >> amazing but probably wasn't thinking time can go forward and backwards. i know i wasn't. >> not about that. but you know he loved the flow of water and to him that was a metaphor for time and steve jobs used to use that, too. if you look at everything leonardo did, it was from patterns like that he was phenomenally curious about why water would flow into a pond and start to swirl and that helped him when he dissected the human body to figure out the heart valve opens and closes not because of pressure but because of the swirls and whether it's the river jordan going past the ankles of jesus in the baptism of christ, the swirl he is draws, those patterns help him see across nature and also unlike a lot of us today, he fervently refused to be siloed he wanted to -- he listed in his notebooks -- i base add book on
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notebooks everyday he wanted to learn why do people yawn, why is is the sky blue? why does light hit a curved object how do they walk on ice in flanders, what does the tongue of a woodpecker look like? this guy is so curious. >> having the curiosity of a three-year-old all the time. >> but we outgrow our wonder years, we forget to ask. you look out the window, blue sky, a little pink a kid says why somehow we ham iter out of them. leonardo woke up everyday and asked those obvious questions like why is the sky blue >> what is his eq like >> he was unlike michaelangelo incredibly collegial, incredibly friendly had a bunch of companions, especially a mathematician named luka paccioli. >> he was not a loaner is where i was going. >> definitely not a loner and
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felt that you were around a defense secretary set of people and you had in in force will and in milan when he went there with the duke of milan you just have play write wrights and poets an mathematician gathered for court amusement and that's when he does the truvan man. it's a self-portrait of him in the earth and universe but he does it with two friends, one is an architect, one is a mathematician and they're trying to design a church and make it the proportions of a man but they travel together it shows creativity is a team sport. >> there's no other authors on the -- you did this? >> it's going to take me forever to read. >> i can't imagine what it takes to write something like this >> it's not as long as as it looks. >> you don't have a ghostwriter or anything? >> there have been lots of great
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people who -- >> do you ever feel like "the shining" like "all work and no play --" do you ever get writer's block >> you golf, you fish, whatever? >> it's an assignment. writing sometimes -- >> and the research involved >> it can be fun and energizing because it's a curiosity. >> i have visions of walter playing the keyboard like a piano. i play the keyboard like chopsticks. >> but how many months of research >> you know my wife, she studied? florence years and years ago and so ever since then we've been going back and reading the notebooks and your friend bill gates bought the best of the notebooks. >> that's very true. >> and salvador monday is up for sale, the only leonardo in private hands will be up for sale in two weeks. >> given the sales of the book
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maybe you'll bid on that. >> we'll be back with stocks to watch in a moment. so you're looking for male customers, ages 25-54,
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gilead shares are rising after the fda approved its cancer therapy m meg terrill joins us we've been talking about gene therapy how long it's been and tough to get things to market. maybe this is the beginning? >> it's accelerating we had the positive news for spark and its gene therapy in rare blindness today the second of a new kind
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of cancer immunotherapy aapproved by the fda for non-hodgkin's lymphoma for patients who have tried two other therapies and they have stopped working. gilead rose after this approval which came six weeks ahead of schedule from the fda. analysts estimate this could be a treatment for maybe 2,000 to 7,500 patients per year in the united states with non-hodgkin's lymphoma these are patients who have run out of other options gilead just acquired this product in its $11.9 billion acquisition of kite pharma so already seeing the potential payoff this is a technology known as car-t. we just talked about this with another drug from know slnovart another little girl who took novartis treatment it takes patients immune cells out of their body, genetically modifies them to detect cancer and gives them back.
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this is the second of car-t therapies that have come to the market it's a one time treatment. gilead set the price for this drug of $373,000 compared with novartis, novartis set $475,000 for its treatment so people are trying to parse through what that will mean for both companies these are different patient populations. >> thank you, meg. >> thanks, guys. when we come back, "squawk box" takes flight. the ceo of united airlines will join us live because, when you really, really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it-
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30 years since black monday. >> the dow off more than 3500 points paper losses more than $500 billion. it's a day that will be in bold print in history books a look back at the extraordinary day on wall street and less sons we can apply to today's market. cnbc exclusive, united ceo oscar munoz speaks out after the airline posts better-than-expected results. plus, beware of the zombies. "the walking dead" -- is -- or is it are -- back. we'll talk to the ceo of the hit
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series the final hour of "the squawking dead" returns right now. >> announcer: live from the most powerful city in the world, new york, this is "squawk box." good morning and welcome back to "squawk box" on cnbc i'm joe kernan with becky quick and andrew ross sorkin we have the great squawking dead thing we did a few years. >> i love it, love it. >> halloween is coming up. >> so we can roll it again >>, we do it again but it makes sense today. also we have the premier of "walking dead" the seventh season on sunday we have josh suppan coming on and it's the 30th anniversary of black monday and the crash which also is kind of like the market was like the walking dead that day sort of. it's the 30th and we'll look at
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futures right now. europe is having a rough session and after the big move up today, it's all red today, down 80 on the dow, 10 or so on the s&p, 35 on the nasdaq. this 30th anniversary of black monday back in 1987 when the markets suffered a record crash. the dow nearly shed a quarter of its value. where were you on black monday tweet us your stories @squawk cnbc we're getting a few funny tweets it's taken about 30 years for these things to be funny because it wouldn't have been funny back then but we have a little bit of -- we got time between that event and where we are today and it's good to be -- we happen to use base 10 and round numbers. we could remember this on any day but that's the way it works with anniversaries exactly 30 years developing story in europe
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spain's government says it will move to suspend catalonia's autonomy after the region's leader failed to drop a bid for independence the spanish government is set to meet on saturday to propose measures to strip catalonia of powers and trigger something called article 155 of the constitution and that would allow madrid to take control of the region how does this affect us? we'll check out the dollar you can see the euro strengthening on these moves at 118. >> two dow components out with earnings first up, travelers. the insurance company earning 91 cents a share for the third quarter, well above consensus estimates. it came in with revenue that was better than forecast, too. profits were down from a year earlier due to significantly higher catastrophe losses. that's probably no surprise at all. the stock is up by 1.7%.
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verizon matching forecast when it came to adjusting quarterly profit of 98 cents per share verizon said it had strong smartphone segment performance with the so-called churn remaining pretty low we'll talk to an analyst in a few minutes but that stock is up by almost 2.5% and blackstone reporting a bottom-line number of 69 cents a share. revenue beating forecasts and blackstone says it has a record $387 million in assets under management united continental posting better-than-expected reports phil lebeau joins us on the numbers and a "squawk box" exclusive guest. phil, good morning. >> good morning, andrew, i am joined by oscar munoz, sue oyo united coming off of q-3 earnings, this was a challenging quarter, wasn't it >> oh, my god. it was a great quarter from a standpoint of setting the stage for our long-term strategy so we have the right people and
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focus. we are completely raising the bar on our operational p.m. manse. we had record performance even with the storms you mentioned and our people have banded together, more so than ever before due to the storms, the relief efforts, the money we raised, it's an exciting time for us. >> let's talk about performance numbers because you did something in the third quarter that coming out of the second quarter i think people would have been surprised about and that's essentially stop the involuntary denied boardings or dramatically reduce them down to 92% and you did something in the thirty quarter that you haven't done since the merger with continental. you had days where you didn't bump somebody from a flight? >> we had 28 days, our previous record was zero so the practice behind that as we told about this this year, for us it's about proof not promise. we laid out a set of objectives and initiatives with regards to customer service that we've been busy implementing. we have them put together and
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the focus of our people in particular has been the most valuable portion of that objective. >> is this an example of something that was long accepted in the industry as, well, you know, you bump passengers, you bump passengers, that's the way it goes within the industry that it took that incident for you to say wait a second, we need to rethink this business and these lock held notions don't need to be held anymore. >> i think it's important. i think the customer orientation is something all of us in business need to keep on top of mind i wouldn't say the industry had fallen off thing we gone but every once in a while i think robert lewis stevenson said sooner or later you're served a buffet of consequences united had that. it was a galvanizing moment, we've laid out a specific set of achievements and achieved that. >> let's talk about passenger revenue. as an industry, passenger revenue in the third quarter once again you see that pricing pressure there
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in the fourth quarter it looks like it moderates. give me your perspective in terms of what you're expecting on the pricing front into next year. >> as you know, this industry has always been dynamic and challenging and competitive and we're facing a little of that. presently we at united, there is some pricing pressure, competition between some ultra low cost carriers and we call them and we're matching the prices we think it's impactful on the short term financially but over the long run it's the right thing. >> but investors say how long does this continue do you see this moderation -- you never want to call the bottom but do you say i see it moderating >> we don't have enough forecasts. right now we have a great level of insight into the next couple months, three months out we get more fuzzy with regards to this pricing moderation it's a combination of factors that deliver that but i couldn't rightfully tell you any
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particular forecast. >> pre-tax merging, how do you feel about the efforts you're making as an airline to catch up with your competitors when it comes to margin levels >> this is the fundamental thing i think our investors will have to be patient with us. united dug itself a hole competitively and for us to dig ourselves out of that hole we have to take a level of risk with regards to how and where we grow the type of investments that we haven't made in a long time so it's as by of a deep hole but we are doing the right things for the long term. we're setting the stage, we have the right strategy and we're really happy and focused and i think very optimistic about where we're headed >> oscar, i know bucky has a question for you. >> just looking at what's been happening with fuel prices, cruel oil prices around $50, sometimes lower than that, that's been a huge benefit to all of the airlines.
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do you expect that environment to kojt? what would you be able to do or how would it impact you if oil prices spiked? >>. >> well, as you've seen before, as oil prices go up and down our prices tend to follow a bit of time afterwards so we moderate the forward curve is our best indicator of fuel and we're still focused on that. >> oscar, it's joe kernan. weapon live near newark so united going back to continental, it's my carrier, my airline, oscar and my wife, all my kids have united credit cards because i want them to spend money which is good for the economy to get the miles, to get the miles and i have all these miles and i'm wondering whether you change something with how to get an upgrate because i think you -- i'm ready to buy the stock because i think you're getting revenue -- i don't think there's any such thing as an
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upgrade because you're getting revenue miles out of those first-class seats. are you selling them all for cash at full price it seems much harder to confirm an upgrade using my mile which is i'm ready to sell to someone at this point. can you help me out? tell me what happened? you must be doing better. >> well, we are doing better and better is purely a simple aspect of that. we have so many more people flying and we hear this quite a bit, i'm a loyal, i want my rewards and it's not as easy to get them so give me time on that i always say proof not promises we need to figure out a better way to make sure we reward your loyalty. it's been difficult due to the fact that everybody is flying and everybody is paying and that's a good thing for our business. >> i'll hedge my sky miles by buying some united stock or something because you have to be making more money because i
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think it's got to be reflected -- >> i'm sure there's a market what are the ingredients of a life well lived? is it the places you go? the things you own? >> up next, vids oerizon out wi earnings we'll check in with an analyst
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have chosen pacific life for retirement and life insurance solutions. protecting what's most important to you. that's the power of pacific. ask a financial advisor about pacific life. yeah, i got some financialbody guidance a while ago. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom?
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what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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welcome back to "squawk box. shares of nike in the red. the retailer downgraded from neutral to buy that's what goldman sachs was doing this morning the analyst pointing to u.s. inventory overhang and signs of overseas weakness. the price target remaining at $54. that stock trading at $51.42
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verizon out with quarterly results. earnings match forecast and revenue beat estimates the company reported upbeat wireless subscriber numbers. joining us now, jennifer frist, she is the managing director at wells fargo security i'm so glad you're here because when these numbers came out, there's a lot of metrics with these types of companies and we need to know, we see the raw numbers by we don't know what expectations were, whether they were above and below and a lot of it has to do with subscriber ads. i don't know whether you heard our coverage, but were these numbers a relief to the market which has been shaky because of losses and cord cutters? >> i think the headline would be the rumors about verizon's death are overexaggerated. very good quarter. don't count these guys out despite t-mobile ads wireless is their bread and butter.
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>> you saw the video sub number for at&t and that's what brought down the market for the rest of the media. >> and don't forget comcast in september is seeing a similar thing. >> with the hurricanes. >> but it talked like they were talking about the same thing, streaming over-the-top videos. >> so so when you look at today's verizon numbers, 18,000 net losses -- >> 16,000 i think. >> 18,000 on video 60,000 additional on internet, that makes you think what? >> it makes me think verizon was smart for selling their wire line assets when they did. they sold three big markets to frontier -- california, texas, florida. i don't think their head is in the stand with this trend. >> that tells you things are as bad as everybody is anticipating >> we like at&t because at&t has their hand in each honey pot and
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they here in an over-the-top game but when you look at what our kids are doing, consuming content, where are they watching it not on the linear tv. >> talking about the various honey pots, you're seeing the breakout of oath. >> yes, $2 billion in revenue. >> what do you make of that honey pot? >> that's a growing honey pot with a good leader in tim armstro armstrong. obviously the call hasn't happened yet integration has been ahead of schedule but armstrong has big goals here about growing this and i think we have got to watch it. >> do you think they aim to make a big acquisition, a la at&t time warner? >> i don't think they have to. i think their fiber initiative outside their markets is bigger than people realize and appreciate and we have to remember verizon leads on network and i think if verizon has their way they're going to be serious national fiber contenders so that's something
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to watch. >> thanks for coming in. >> thanks, becky. when we come back, a literal moon shot. astronaut terry verts broke the record for taking the most photos ever in space he'll join us to show us some of them now by the way, it's the anniversary of the black monday crash. where are you? joe clark says "started in financial planning two weeks before the crash, showed up to an empty office. no money, no clients, priceless. ors.l be right back with more ors.l be right back with more stie
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big corporate shakeup taking place. ken chenault will be stepping down from his role after 17 years. he was one of the first african-americans to run a "fortune" 500 company and he took the helm back in 2001 he successfully worked to turn around amex after the company lost its partnership with costco while he was at the helm, the firm expanded beyond its corps market of corporate and wealthy customers to broader clientele and chenault will be succeeded by vice chairman steven squeri that will be february 1. the credit card company posted better-than-expected third quarter results last night shares of american express are trading down close to 2% it's space week on "squawk box. our next guest holds the record
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for taking the most pictures from space 319,275 pictures let's bring in terry virts, former astronaut and the new author of the book called "view from above, an astronaut photographs the world. it features over 300 images that he actually snapped while he was in space and terry, thanks so much for being here today. >> thanks, good to be with you. >> you spent over 200 days in space. so many things we want to know about but what's it like to spend 200 days working in space? >> well it's an amazing experience there's two things that are completely different than on earth, first of all weightlessness, getting used to working and moving in weightlessness is a process and a lot of fun and the view can't be beaten. it's amazing i tried to capture some images in the book but it's spectacular. >> i've been following your twitter feed for a long time was there a point where you said okay, this is my mission
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i'm going to ache more photographs than anyone's ever taken? what drew you into it. >> i didn't know i had done that until i got back and the poor nasa people whose job it was to down link my pictures were glad when i came back to earth but i've always been a photographer and i really wanted to share the experience with people on earth because people around the world are just fascinated with space travel and only a few people so far have been able to go i just wanted to share the experience. >> you were there, i think, while there were some natural disasters back here. i remember seeing things thinking okay, that's a very different perspective. what's the most amazing thing or shocking thing you saw from space? >> well, we saw over 20 typhoons and hurricanes there was up with in the philippines. there's a photo of in the the book, it was just an incredible gigantic storm with this huge eye and our whole crew was just eyes open gasping at this massive storm. >> we think about you being in space and removed from everything happening on the
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planet, getting a very high view of all these things but i'm trying to think about what it's like you were in charge of an international space crew that included a russian, too. what happens with these tension wes think about in the real world when you're in space how do you navigate that i was there, i trained and flew during sanctions, during the crimea annexation, the ukraine civil war and the thing that i was most proud about when i was commander of the station is how well we worked together. the russians and the americans and the europeans got along very well we were just hoping to survive space is a pretty not forgiving environment. i just saw my crew mate anton in houston, we're still friends to this day and i think we were a good example of how we can work together and forget about and put the political tensions aside and work together for a difficult goal of surviving and doing science we were doing in space. >> we had scott kelly talking about what it's like to navigate
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through one of those junk fields when you're in space and how terrifying that can be what kind of emergency situations if any did you have to deal with >> scott when i was the commander scott showed up so i got him started off on his mission and mischa kornyenko there's a whole chapter in my book about the emergencies we had and this thing was something we had never had that alarm before and we spent a day thinking the space station was going to die the russian prime minister called us up and he said "american colleagues, you can stay on our side of the station. it was a great example of international cooperation during what we thought was a very serious emergency. turned out to be as a alarm but we had a pretty exciting day. >> what would ammonia and that alarm mean what kind of things could it have signalled >> ammonia is the coolant in the space station. your car has radiator fluid. the american side of the station uses ammonia to get rid of heat and when we went through training at nasa they told us if
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you smell ammonia, you don't have to worry about it, you're going to die it's a great coolant but a deadly fluid. >> wow maybe we ought to give some thought to changing that but terry, i want to thank you very much for joining us today and folks the book is called "view from above, an astronaut photographs the world. thanks so much for joining us. >> thanks for having me. coming up when we return, breaking economic news, we have two reports about to hit the table and then later the latest new unicorn to go public monaco db. we'll talk to the ceo of the database software company ahead of the opening bell. that's first right here on cnbc. and we've been asking you to tweet us your stories about black monday back in 1987. sam tweeting "finance students standing next to classmate who had bought puts on friday. his $200 became $22,000 and i was hooked on options. hopefully you're hooked on squawk we're back in a moment
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♪ now hang me out to dry, you wrung me out too ♪
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♪ too, too many times we're just seconds away from weekly jobless claims and the philly fed manufacturing index dow jones now giving back some of yesterday's -- not quite all, 160 points but almost 100 points of downward pressure on the dow today. 12 on the s&p, 38 on the nasdaq. rick santelli has the numbers we're waiting for. rick >> wow, big moves, last week initial claims were 243, so we had a subtle revision, 244, now shave 22,000 to get to the 2222. twos are wild. so 222,000 if you look in the rear-view mirror for continuing claims, they move from 1.9 to a whisker under 1.89 let's get to the money ball shall we october read on philly fede
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index. better than anticipated, sequentially better than our last look at 23.8 and 27.9 is the best number since may when it was 38.8. so not too bad there we look at yields, still hovering at slightly below the mid-230s for 10s, 234. the equity move obvious bill we've been discussing. i wonder how much of that was influenced by such a well thought out plan of the treasury secretary to put a block on the shoulder of the marketplace tying policy to markets, i don't know probably not a great idea andrew, back to you. >> thank you for that. appreciate it, rick more companies than ever before are gathering huge amounts of data, throwing off each everyday but outside simply acquiring this data. the real value comes in processing and learning from it. that's what our next guest does, we are joined now by the president and ceo of database platform mondodb which is a very
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big day for him. it's slated to begin trading on the nasdaq he's also a four time cnbc disruptor 50 company and the second from our 2017 list to go public and we're thrilled to have you here. >> thank you. >> a big day for you. >> good to be here thank you. >> tell us the story for investors who don't know it. >> so a database is essentially where you store, process, and analyze data and every application needs a database an application you run at home, at work or even on the mobile device and so if you think about the explosion of apps and how every company is trying to transform themselves, this is truly one of the largest markets. >> for those who are ignorant, we're hearing volume, i don't know what this is about. but for those who don't understand it, how does this relate to the cloud? meaning cloud providers like amazon, google, microsoft, you're doing what? >> our database runs on premise
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and in the cloud we're one of the most popular technologies in the cloud. so we start on premise and then move to the cloud and it's easy to do so if you want to run in a hybrid environment it's easy to do so so if they choose mongo db they can move from one cloud provider to the another without having to rewrite. >> how do you think about also or google having this "as part of the sfak" if july we have a lot of respect for amazon, google and microsoft they're partners, they funded the rollout of our databases servicing officing called mongo db atlas it's the fastest part of our business growing we believe well well positioned. some of the most sophisticated and demanding customers. top 50% of the "fortune" 100 are customers of ours today. customers across every vertical industry, financial services, telecom, media, all using mongo db so we feel like we're well
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positioned and this is a massive operation. >> what's the distinction between what you do and everybody else what is that one piece of it >> if you think about it, most applications today run on a database technology that was introduced in the 1970s so in the 1970s, i don't know if you were even alive then. >> late '70s for me, yeah. >> i was using a rotary phone to make a phone conversation so people are looking for muchmor modern, scalable and flexible platform and thats why customers are choosing mongo db. >> your pricing came in above what people had been anticipating what happens when you got out there and started feeling things out? >> investor use yachl w oor ent strong but it's not about today, it's about the future, we are going after one of the largest markets in enterprise software the second thing is we have a very disruptive technology and the momentum of the business is strong so again we've got customers across every industry
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using us for almost every concealable use case so this is just the start and the best is yet to come? >> in terms of when you become profitable, when you get past the losses what is the timing on that >> with the proceeds from this transaction we're fully funded so we don't have to go back out to the market and raise more capital so investors are comfortable with that but we are investing for growth we feel like we're well positioned and so we're investing in r&d, investing in sales and marketing to deepen our reach in existing markets as well as expanding to other markets. >> we'll leave the conversation there. we wish you a lot of luck with it they have your colors outside, i don't know if you saw that. >> it's a big day. and i want to say, i want to thank our employees, our customers we wouldn't be here without them and it's a testament to the work they've done and support they've given us. >> congratulations to kevin ryan, remarkable entrepreneur
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who this this together, also double click guilds. business insider kind of an amazing thing over just a decade and a half. >> we're pleased to have him part of the team he's one of the founders of the company. >> great to see you, thank you. >> nice to be here. up next, amc network ceo josh say pan is here there's one reason the walking dead is returning. he will join us on set i wouldn't want to be introduced as the walking dead, that's one of his shows josh is great. got a great career ahead of him. we'll be right back.
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that was a clip of "the squawking dead" and you can tell that was the old set so that's old. >> at least three years ago. >> which is a testimony to the phenomenon that "walking dead" is and has been for how many years. >> eight years. >> the eighth season of the drama premiers on amc. it will be the series, 100th episode, joining us is josh sapan, ceo of amc. thanks for coming in today we'll start with talking about the show itself because you've had great antagonists that we've
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wanted comeuppance with before the governor and it takes a while but -- >> david morrissey, the governor. >> but never anyone to the extend iof negan and you didn't cast him yourself. >> i do not. >> who cast -- the actor's name is -- >> jeffrey dean morgan. >> he's unbelievable. >> he's a spectacular actor. it's a life long legendary role. >> it must be because i can't imagine he could so completely fill up another role unless it was designed for him. >> he is a wonderful actor. >> he made negan. >> the people who make the show, scott gimpel, the show runner, is deft and creative and almost brilliant every episode. he just is so deft because as you know it's post-apocalyptic zombie but it's really about people and life and organization and relationships and all that stuff that we all know.
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>> you know, there can never be an apocalypse, josh, we don't need to worry about this at all. >> there's not going to be an electromagnetic pulse right above the u.s. where 90% of us die. suddenly it's become more worrisome with north korea i'm not ready to say it's clear sailing for the rest of our lives. i don't know whether it will be zombies or not but -- i'm not saying it won't be. >> it's been a time-honored theme in literature. "lord of the flies," it was essentially thematically similar. about what happens when there isn't social construct when there isn't social organization how do people -- >> well, let's talk about where the end is near not for amc but for cable in general, you do have a lot riding on walking dead and it's an asset that slowly over time doesn't do the same numbers it did before last year's finale was done but it's still an amazing property.
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>> it's the biggest show by i think -- the next two shows it's almost double the ratings of "big bang". >> but people that worry about amc talk about the rise of streaming and that "walking dead" is long in the tooth but there was a wells fargo report that says you have eight things going for you. a clean portfolio, must have content, increasing distribution, growing share of a shrinking pie, flexible balance sheet, no nfl worries and a trusted management team, that's you and mna optionality. but it rabb rough selling. you've had to navigate tough waters >> that report was a flattering report i hope a lot of it is true we have a great balance sheet, we have very significantly growing distribution revenue we have channels overseas. >> you have streaming that you're getting into. >> significantly getting into streaming and we have a major content business so we're a studio and we sell dozens of shows. our management team is not just me, it's a significant number of people. >> i would imagine that the
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biggest challenge that you either confront today or are about to cop front is simply the competition for great content which is to say when you hear the netflix is planning to spend $8 billion and when you hear apple is bidding up the cost of programming to numbers that might not make rational sense in your business, what do you do? >> i actually don't think that's the big issue. >> okay. >> i'll tell you why if i may. >> yeah. >> before billions is made, one doesn't know that it's going to be great. >> correct. >> before "the walking dead" is made when it was passed on by a few others, you don't know if it's going to be great i mean this so we're doing -- paul giamatti is producing a show for us called "lodge 49." it's a rare character study. i think it's wonderful marty knoxon is doing a show for
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us called "dietland" a serious show but it's fanciful about women and eating disorders and how that plays into the world so i don't know that there's a paucity of creative opportunity. >> potentially, but you're just thinking about in the terms of the stock market the stock market when it goes up significantly, if you are a value investor you may be better than anybody else at finding the underloved stock or the script that nobody has picked up on yet but it's harder to find those things in an up market and with that kind of money flowing in you wonder. >> look, there's more content demand and it's not a finite asset so you don't know where the next great wonderful show is coming from is all i meant to say. that's true. the other thing that is worth thinking about and i know you touched on cord cutting and shaving and the moments of systems. the other thing that is occurring that is at least macro
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interesting is that there's a streaming world now, netflix we read about 50 million u.s. subscribers, 100 million worldwide and 90 million u.s. homes paying for cable or pay television so the systems are also expanding and the aggregate revenue is expanding, they are competitive but they are expanding. >> how do you think about mna? living as an independent and living as one of the smaller independents out there and sort of one of the things that analysts and investors say is you could potentially be a takeover target for one of these digital streaming services that may want to have a hybrid linear strategy. >> if you follow our history, when we separated from cablevision, we spun off and were levered at about five and a half times today our balance sheet is our leverage below three times along the way we bought channels
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overseas for about a billion dollars. we bought a controlling interest in bbc america and we brought a piece of funny or die doing a show called brockmeyer for us. if you haven't seen hank asooza, take a quick look. so we brought our leverage down below three from five and a half times so we think we got a really good balance sheet, we have lots of flexibility if we find things to buy that are right for us we'll do them and i think the question of scale which i'm sure you're quite authoritative on today we have five channels that we sell to the pay tv industry. i think that's sort of optimal weight you don't necessarily want 10 or 20 channels to be selling that may have worked. >> but do you think it will be harder to get better or the same carriage fees as these deals roll off we just saw viacom in the battle of its life literally over this
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weekend. who knew whether they were going to have a real blackout or not on the spectrum system. >> i actually think -- it will sound bullish. i think amc networks has more pound for the penny in its -- what we charge cable operators for our five channels than almost anybody else in the business we have five channels that are all known. they're distinct and strong and appropriately priced so we've been growing our distribution revenue mid to high single digit. we're good channels, they want us. >> you saw what negan did to glenn obviously. and abraham. and you see the way he's taunted rick and rick -- usually people are going to get comeuppance i think and we're all waiting for it can you tell me -- does negan die? how bad is his death what happens to the other
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saviors? >> don't tell us. >> you wouldn't respect me if i said any more than i should so i'll just say you have the setup and you feel sentimentally the way i do as a fan. >> i don't want negan to go, though i do and i don't. >> i do. >> i do and i don't. i don't know how you're going to -- how many more years do you think? the comic book is going to go for -- >> it keeps writing so there are franchises in our world that frankly are 50 plus years old as we know. they don't stop. we have "dr. who" on the air on bbc america. that's 50 years old and there will be a female dr. who. >> the makeup people are amazing and i just heard our makeup people talking about that andrew is coming in they have a hard task here as welcoming in in the morning. do you think some of the real -- >> it takes work. >> i think it's harder than some of the -- right? it's ours. he gets in at about 5:00 or 6:00
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actually guilding the bill ily. any way thank you. >> >> and this is one of those things where there is a mid-season hiatus again that we have to wait does negan make it to that >> stay tuned. i need you to respect me tomorrow. >> okay, i'll respect you in the morning. the ultimate tease "the walking dead" premier this is sunday. this sunday at 9:00 p.m. eastern time before we head to a break, check out shares of philip morris the tobacco company missing estimates by 11 cents with adjusted quarterly profit of $1.27 a share. revenue missing due to a weak shipment volume in all regions except for asia and that's taking a big hit on the stock which is down by 4.6%. when we come back uber board member ariana huffington speaking out on the health of the ride share startup we'll tell you what she said and whe asked you to tweet us your black monday stories in honor of the 30th anniversary of the stock market crash phillip bennett tweets "i was 21
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years old working as a floor clerk in ispx pit at the cboe. fights broke out all over the pit. wow. that paints a picture for you. let's get back to futures indicated down across the board. that's off the weekend levels we saw earlier, most etfs only track a benchmark. flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. ♪ it's not just a car, it's your daily treat. ♪ go ahead, spoil yourself. the es and es hybrid.
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welcome back to "squawk box. uber board member ariana huffington speaking out on the future of the ride-hailing company. the company recovering from a rocky few months after the firm's ceo stepped down amidst all those scandals in an interview last night, huffington said uber is in recovery mode. >> moral at uber is really amazing at the moment. everybody fell in love with dara, our new ceo. people really relate to him and he is moving very fast to fill in the gaps in his executive team >> media mogul also said she hopes that soft bank's much-anticipated multi-billion dollar investment in uber will go through soon. as we head to break, here is a programming note later on cnbc, do not miss goldman sachs' co-coo, david solomon, at 10:30 a.m. eastern time that's a cnbc exclusive interview. meanwhile, we'll be right back
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pthey don't invest inn stalternativesds. or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. time for your kensho stat of the day. is the second half of act seems to be bullish for stocks the nasdaq 100 dating over 2%. welcome back, everybody. blue apron is cutting about 6% of its total workforce the meal kit delivery company's
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valuation has dropped more than 60% since it went public more than four months ago it's been dealing with rising cost, declining customers, and the threat of competition for bigger rivals like amazon. >> and you remember snapchat's dancing hot dog? no, i don't. anyway, well, here it is and if you love the filter, good news for you snap is now selling it on amazon, as a costume for $80 this is the newest physical product that the company sells, besides its spectacle glasses. ceo spiegel called the dancing hot dog filter the world's first augmented reality superstar during the company's last earnings call. there's what it would look like if i was in it halloween has a whole new meaning this year. just watch yourself. i'm really not sure -- >> why >> because we've gotten to the point in society now where we're a little bit sensitive about, i mean -- >> i think it's --
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>> it's never been this bad, though you could be triggered with -- i'm not even going to get into it >> your costume? >> any costume i don't know, what is just perfectly safe and not going to trigger anyone given what we see on college campuses. >> caylee's going to be a unicorn. i think that's pretty safe >> i'm worried about them being chased down. >> he read your column >> people aren't goi to go back and look at that. you already helped promo it on tuesday. i want you to do it on wednesday. don't you have a web presence? >> what's coming up this tuesday? >> i don't know yet. >> honestly? >> actually, i do! because you know where i'm headed on friday >> yes, i do >> i'm headed to saudi arabia. >> you're going to talk about the whole -- >> we've got a lot of stuff we're going to be doing on the air from saudi arabia and i imagine i'll also have a column. >> you remember harvard boy, steve frank? >> yes he tried to milk a camel and he
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wasn't successful. i think it might have been a male camel it was a major problem but you need to try -- >> and you're worried about halloween costumes >> i will get on a camel and maybe do some sand skiing or sandboarding is that what they call it? >> i think they do that over there as well. >> that's going to be fun with you over there you're going over early enough to shoot some good stuff >> we have some stuff. we'll be rolling it out on monday >> what have you got -- can you tell us anything you've got planned? >> tomorrow, a little hint a little taste it's ood >> i know some of it i talked to somebody yesterday you're talking to. >> okay. >> but i won't say separately, the bank of england spending some big bucks on a snapchat filter listen to this beside insider reporting that the boe spent nearly 3,000 pounds on the filter used to promote the release of the new ten-pound note last month, the bank of england bought a filter to celebrate the new bank note. the pricey filter appeared for snapchat users in seven major uk
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cities and that's what you get for three grand. >> all right >> digital world >> we've got 15 seconds for a final check on the markets that's not as bad as it was. it was almost triple digits on the dow. >> that's because you have two dow components that reported better than expected >> 6360. >> what's the other one? >> travelers >> okay. that's a dow component >> yeah. >> that's right, it is all right, we're done. >> say good-bye. >> good-bye, good-bye! make sure you join us tomorrow "squawk on the street" joins right now. ♪ good thursday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. futures are weak on a busyday for news we've got tons of earnings, yellen meets with the president. we've got a vote on a budget reduci resolution the 30th anniversary of black monday europe is down spain threatening to tak

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